Systemic risk
IMF discussion note calls for 'bail-ins' for resolution of Sifis
International Monetary Fund discussion note explores the potential for ‘bail-ins’ to resolve problems posed by systemically important financial institutions (Sifis)
Fed names academics on 2012 model validation council
US Federal Reserve names academic economists that will provide independent advice regarding models used in annual stress test of major banks and financial institutions
BoE's Tucker: FPC capital powers 'won't be popular'
Attendees at ACT conference raise concerns about increased lending costs after Bank of England’s Tucker argues for powers to raise sectoral capital levels
Fed’s Tarullo sees early wins for dynamic capital supervision
Daniel Tarullo, a governor of the Federal Reserve, believes the introduction of new dynamic capital techniques in the US has improved regulation; says static rules have serious flaws
Bernanke outlines shadow banking reform priorities
Fed chairman outlines regulatory steps taken so far in relation to shadow banking; says careful monitoring and supervision of the whole system are required
Chakrabarty: Crisis has turned policy frameworks 'on their head'
Reserve Bank of India deputy governor tells conference that policy focus has moved towards future crisis prevention
IMF facility not as good as own-funds, says Bank of Mexico’s Duclaud
Reserve managers in some developing markets believe own-country foreign exchange reserves are safer than IMF credit lines
Commission paper sheds light on dangers of shadow banking
The potential for shadow banking to damage the wider banking system and disrupt the macro-prudential aims of the ECB has been highlighted in the latest green paper from the European Commission
Tighter euro rules will also target trade surplus countries, says González-Páramo
Europe needs to create new mechanisms to fulfill the duties of ‘missing institutions’ to ensure the euro can survive. New monitoring capabilities will also target trade surplus countries, says ECB board member
IMF board approves €28 billion for Greece
IMF releases first tranche of funds as part of Greece’s ‘exceptionally high-risk’ economic adjustment programme; Iceland repays some IMF debt early
Robert Pringle's Viewpoint: Strauss-Kahn on central banks, the euro and the dollar
Dominique Strauss-Kahn’s personal failings deprived the world of a leader with the expertise, vision and drive to push though vital monetary and economic reform. But his views still hold weight
ECB working paper proposes indicator of systemic stress
European Central Bank researchers outline a new indicator of contemporaneous stress in the financial system, called the composite indicator of systemic stress
IMF readies €28bn in support of Greece
International Monetary Fund managing director Christine Lagarde plans to get funds approved this week; Isda rules debt restructuring a ‘credit event’
Greece’s private bondholders approve ‘voluntary’ debt swap
An 85.8% majority approves Greek sovereign debt swap but strong-arm tactics raise concerns about the future legal certainty of sovereign bonds
IMF’s Min Zhu on macro-prudential policy implementation
Deputy managing director of the IMF opens conference on macro-prudential policies; says countries must address three “crucial issues” to make these policies effective
Use of behavioural finance will not stop next crisis, says CNB adviser
The use of behavioural economics in management decisions and supervisory models would not prevent a future crisis, says Czech National Bank adviser, Michal Skořepa
Regulators ignore data challenges at their peril, say CBJ authors
Standards-setters around the world seeking to improve financial stability are destined to fail unless they can get to grips with core data needs, according to the authors of a new Central Banking Journal article
IMF working paper formulates new forecasting framework
New IMF research looks into systemic real and financial risks; focuses on the measurement of them, predicting them and stress testing
De Larosière fears another crippling credit crunch in Europe
New international banking regulations aimed at cleaning up the financial system could cause a crippling credit crunch in Europe, says Jacques de Larosière
Macro-prudential powers are no panacea
Central banks will take on substantial new macro-prudential supervisory powers in the years ahead. But this is a dangerous experiment, and a step in the wrong direction
Brendan Brown on life after death for the Emu
Brendan Brown puts forward a proposal for how a functioning monetary union in Europe could operate if the current system was to fail
Robert Pringle’s Viewpoint: Central bank macro-prudential powers are no panacea
Central banks will take on substantial new macro-prudential supervisory powers in the years ahead. But this is a dangerous experiment, and a step in the wrong direction
IMF paper proposes new toolkit to monitor fiscal vulnerabilities
Fund study builds new toolkit to assess fiscal risks in advanced economies; framework contributes to IMF-Financial Stability Board Early Warning Exercise